Police warn of S$2.4 million lost to loan scams from January to May 2025
The Singapore Police Force has issued a warning over a sharp increase in loan scams, with at least 375 cases reported and losses exceeding S$2.4 million in the first five months of 2025. Scammers are using social media ads, text messages, and fake licensed moneylender claims to deceive victims.
- At least 375 loan scam cases reported between January and May 2025, with losses of over S$2.4 million.
- Scammers lure victims via social media, texts, and fake licensed moneylender profiles.
- Police remind public that licensed moneylenders cannot advertise through social media or demand upfront payments.
SINGAPORE: The Singapore Police Force has issued a warning about a rise in loan scams that have caused victims to lose at least S$2.4 million between January and May 2025.
In a statement on 16 July, police said that at least 375 cases were reported in this period, urging the public to be wary of quick cash offers online.
These scams often start with short videos or advertisements on platforms such as TikTok and Facebook. Victims may also receive unsolicited messages through SMS or WhatsApp.
Believing they are applying for genuine loans, victims are asked to transfer money in advance under the guise of “account clearance”, “lawyer fees”, or “insurance fees”. Payments are made via internet banking, PayNow, ATM deposits, or even in person.
In some cases, scammers pretend to represent licensed moneylenders and instruct victims to take out legitimate loans, only to transfer the money to them for supposed “processing”.
Others are told to buy mobile phones with SIM cards registered under their names and hand them over to a “money mule”, falsely believing this is part of a loan requirement.
Victims often realise the deception only after the promised loan never arrives.
Police clarify rules for licensed moneylenders
Police reiterated that licensed moneylenders in Singapore can only advertise through approved channels, such as business directories, official websites, or within their business premises. They are prohibited from contacting borrowers via text, phone calls, or social media.
All licensed moneylenders must verify borrowers face-to-face at approved locations, and cannot ask for advance payments for GST or administrative fees. Only an administrative fee can be deducted upon loan disbursement.
Public urged to remain vigilant
Authorities warned that reselling or registering SIM cards for others without valid reasons is an offence.
To safeguard against scams, the public is encouraged to install the ScamShield app, enable two-factor authentication for banking, and verify lenders via the Registry of Moneylenders website.
Suspicious links, numbers, or advertisements should be reported immediately to ScamShield or police hotlines.
The police emphasised that tackling scams is a shared responsibility, urging citizens to ACT — Add security measures, Check legitimacy, and Tell authorities, family, and friends about scams.
More information is available at www.scamshield.gov.sg or through the 24/7 ScamShield Helpline at 1799.
